Speaking at a meeting to discuss achievements, challenges, and measures aimed at managing the tourist season, Deputy PM Balluku highlighted that these advances have not only enhanced energy security but also delivered direct financial benefits to citizens through significant reductions in electricity prices.

Albania is increasingly attracting international investors in the clean energy sector, with new solar and wind parks investment projects already underway across the country. According to her, these investments are closely linked to ongoing reforms and the creation of a business-friendly environment.

According to her, the transformation of the power system is steering Albania towards liberalized supply and production markets – an important step aligning the country with European standards.

A key driver of this progress is the expansion of production capacity.

“Over the past year, Albania has added 500 megawatt-hours of solar-generated energy, diversifying its energy portfolio. These new capacities not only enhance system stability but also increase export potential,” Balluku noted.

A major government goal is for Albania to become a net exporter of electricity by 2030, with a strong focus on renewable energy.

“Achieving 100% electricity production from clean sources is already a reality, positioning Albania among Europe’s most advanced countries in this regard,” she stated.

The Deputy Prime Minister went on saying that the European Union has recognized Albania’s reform efforts, paving the way for Chapter 4 negotiations, which cover the green agenda and integration with European energy systems.

She added that according to the World Economic Forum, Albania scored 78.8 on the energy sustainability index, ranking first in the region and surpassing countries like Switzerland and France.

Balluku concluded by announcing that a new electricity sector law aimed at further market modernization and fair competition, in line with EU standards, will soon be submitted for public consultation.

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According to Director of Tariffs at the Power Distribution Operator (OSHEE), Romir Pajenga, new rates will lower the cost by 8.5 lek for every 700 kWh consumed, and 9.5 lek for higher consumption.

The price cut will affect households consuming less than 800 kWh per month.

Currently, households are charged 9.5 lek per kWh before VAT, increasing to 11.4 lek with VAT included. Since 2015, pensioners receive a monthly compensation of 648 lek for electricity prices.

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Speaking at a joint conference with the Deputy Prime Minister Belinda Balluku, also Minister of Energy and Infrastructure, Prime Minister Edi Rama said it is the first time since the regime change in Albania, 35 years ago, that electricity rates are lowered for household consumers.

The Premier recalled the lamentable state of the country’s energy sector when his government took office in 2013, saying that power grid losses were estimated at around 50% due to mismanagement and electricity theft.

He also underlined that only 65% of the consumers used to pay utility and electricity bills, while only 100 000 consumers benefited reduced rates under government support policies.

Rama stated that the number of beneficiaries from the reduced electricity rates is now 10 times higher or over one million consumers.

Earlier today, ERE decided lower the cost by 8.5 lek for every 700 kWh consumed, and 9.5 lek for consumption above this amount and the new reduced rates are expected to enter into force as of February 1, 2025.

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“The Energy Regulatory Authority’s Board will convene on Tuesday with the meeting’s agenda focusing on the retail prices for Universal Service Customers for the period February 1, 2025 – December 31, 2025,” ERE said in a release.

The Deputy Prime Minister Belinda Balluku, also Minister of Infrastructure and Energy, announced the new electricity tariffs last year, saying the move aims at  easing the financial burden on low-consumption households.

Currently, households are charged 9.5 lek per kWh before VAT, increasing to 11.4 lek with VAT included.

Balluku said that government officials have been collaborating with OSHEE, KESH, and OST to implement the reduction.

Currently, households are charged 9.5 lek per kWh before VAT, increasing to 11.4 lek with VAT included. Since 2015, pensioners receive a monthly compensation of 648 le for electricity prices.

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Balluku noted that new higher price rates will be applied to bakeries also housing pastries and cafés.

“The electricity price will remain unchanged at 7.6 lek per kw/h for bakeries only, whereas the bakeries offering also pastry products will pay 9.5 lek per kw/h and bakeries serving also as cafés will pay 12 lek per kw/h,” Balluku said.

According to Deputy PM Balluku, the current electricity price is subsidized and ensures fair competition. She announced that the new electricity rates for bakeries that also house pastries and cafes will enter into force starting as of May 1.

Balluku said that together with sector representatives she has embarked on a tour to present the new electricity billing system for the bakeries after the initiative has been approved by all stakeholders and will help private entities to keep costs and prices unchanged.

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Addressing a meeting with retirees to present the latest Social Resilience Package, PM Rama underlined that the government will continue to protect more than 726,000 households and over 95,000 small businesses across the country from the increased electricity price.

The Premier noted that the government decision to provide cash handout to pensioners and vulnerable groups to compensate for the rise in prices of basic food items “represents a financial shield already activated by the government since the onset of the energy crisis and each household will see the value of this financial shield in the next month’s electricity bill that will include also the real power price along with the government subsidised price.”

“We are through an extremely tough time because of the war that has gripped to Europe again after so many decades and I very much hope the war won’t spill over, but nobody knows for sure how long it would last. The real war is taking place in Ukraine, yet its spillover effects have been immediately felt throughout Europe and the world in the soaring prices that alarmed the markets and triggered panic at the initial moment, forcing governments around the world to react,” the government head said.

He pointed out the fact that “war has had its impact on all prices, but with the electricity crisis being the most severe one, which actually started much earlier than the war.”

“We have already warned that a serious energy crisis was looming several months ago. Many reacted negatively and claimed this was a game. But we had started to realize the crisis as prices in the energy market were increasing,” PM Rama said, adding that one megawatt hour of electricity costs 550 euros now from 52 euros a year ago and such a hike in electricity price directly affects the country’s economy.

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